Conditions to fulfill to avail Quick and Hasselfree Personal Loan

So as to get a quick and hasselfree personal loan from any bank you should keep in mind the following points so that you dont face any problem while taking a loan. The criteria are as follows:

1. Fulltime Employment with regular and recurring income.
2. Minimum monthly income should be atleast Rs. 8000/-.
3. Minimum age required is 18 years.
4. Presence of an active checking account
5. And borrowers have to give some post dated cheque to lenders.

Why Personal Loan?

A big question as per why should we go for personal loan. There are many people who go ahead with personal loan instead of a home loan or a car loan.

So why do people prefer personal loan over other loans?

Following reasons can be considered for the same:

1. Renovating your house, marriage expenses, medical expenses, holidays, purchasing consumer durables, higher education etc, personal loan can be used for any such purpose.

2. No clarification required while applying for a personal loan.

3. No guarantor or security or collaterals required. One can obtain it primarily on the basis of their income.

4. Other loans carry a higher interest rates than personal loan hence many people, these days, take personal loans to repay their credit card outstanding.

Some of the salient features of Personal loan are listed below:

* Loans for both salaried as well as self-employed
* Loans are available from Rs. 20k to Rs. 20 lac for any purpose depending on one's requirement
* Flexible repayment tenure ranging from 12 to 60 months
* No security/guarantor required
* Loans available against repayment track record of any existing car, personal or home loan
* Loans available against proof of life insurance policy premium receipts
* Simple procedure with minimal documentation & quick approval

More Queires on Personal Loan Answered

Q - Should one take a personal loan in place of other loans like home loan, business loan or is it very expensive?

A - A personal loan significantly has a higher rate of interest when compared to a home loan. On the other hand, the loan repayment tenure of a personal loan is also shorter, when compared to that of a home loan. Hence it depends on your power to repay and the amount of loan you require.

Q - Which is the bank giving lowest rates in personal loan?

A - There is nothing like a 'best bank' or a 'best rate of interest'. You need to look around before you finalize a lender or bank.

Q - Can one avail more than 1 personal loan from the same/different banks? What are the interest rates? Which documents are required?

A - Anyone can apply for more than one personal loan from the same or different bank(s) conditioned he/she are eligible for the same according to their income and other relevant details or documents. The interest rates would range from 13% to 21%. The document required are:

1. A copy of your passport or driving license or voters ID or PAN card or photo credit card or employee ID card (in case you are employed with a government owned company) as identity proof and signature proof.

2. A copy of your passport, or ration card, or utility bill, or voters ID, or LIC policy receipt as residence proof.

3. The proof of income

Q - Does SBI provide personal loans?

A - SBI provides personal loans only to the employees of selected organizations only. If the person doesn't fall under that bracket then they may not give a personal loan to that person.

Q - What is risk behind taking a personal loan of Rs. 6 lakhs for down-payment of house for a period of 6 months?

A - As already told before, there is no such thing as the "best loan rate". If such would be the case, all other banks and schemes would have no consumers at all. Different banks are strong in different areas depending on the type of client, the type of property and specific loan needs. You will have to explore the market to find the best loan rate suited to your needs.

Q/A - Personal Loan

Q - Planning to take a personal loan so as to build a house. Is it a good move?

A - Go for a home loan rather than a persona loan as a home loan is cheaper.

Q - Would taking a personal loan at the end of the financial year for tax planning and repaying it in the next financial year a good decision?

A - Personal loans can be pretty expensive and the repayment charges make them even more so. If the need is for credit is for few weeks, you may be better off by making the investment through a credit card rather than by taking a personal loan.

Q - I need Rs 20 lakhs for buying a flat. Since home loan processing takes time, I intend to take a personal loan and when the home loan is sanctioned, I plan to repay the personal loan with it. Is it a good idea? What are its drawbacks?

A - You need to disclose a huge amount of income for getting a personal loan of Rs 20 lakhs which is not going to be too easy as well.

Q - What should be done in a situation of over-draft?

A - In an unsecured overdraft situation, there is no such thing as a prepayment. Just pay up the amount and keep the account in positive balance and there will be no charge on you. Also inform the bank well in advance that you do not wish to renew the account, so that the renewal fee is not charged.

Q - In an ideal scenario what should be the maximum EMI percentage an individual should afford in percentage terms?

A - It certainly depends on the income; higher the income - higher would be the percentage to pay as EMI. However, as a general rule of the thumb, about 40 per cent of your net income is considered safe for paying as EMI. Anything above 55 per cent is in the red zone.

Some Chat Questions on Personal Loan

• Would taking a personal loan at the end of the financial year, for tax planning, and repay in next would be a good decision?

Personal loans can be pretty expensive and the repayment charges and EMIs make them even more so. If the requirement is of credit for a few weeks, then it would be better off by making the investment through the credit card rather than by taking a personal loan.

• Have heard that some banks provide personal loans at floating rate of interest. Which is the best way for PL?

Fixed rate of interest for personal loans and also most banks provide these only.

• Outstanding bill of Rs 55,000 on credit card. Is it a good idea to take a personal loan and clear all outstanding on credit card?

It is a good idea as long as you are not going to use your credit card for taking up fresh debt. Also,there are chances of you facing difficulty in getting a personal loan if you have already defaulted on your credit card payment.

• Is personal loan useful for running a business or are there other options available?

A better option is a secured personal loan or commonly known as loan against property / security (such as a house/ office/ shop or financial security such as jewelery, shares, units, insurance policies, etc) which are cheaper than normal unsecured loans.

Banks revise deposit rates for Personal Loan

The 50-basis-point CRR hike by the RBI in its midterm monetary policy review has led to several banks revising interest rates on fixed deposits.

State Bank of India cut its peak interest rate on the 550-day deposit by 25 basis points to 8.75 per cent.

SBI has also revised their deposit tenures. The bank was offering 8 percent on deposits of1-2 years; it will now offer 8 per cent interest on 1 year to 549-day deposits, 8.75 per cent on 550-day deposits, and 8 per cent on deposits over 550-day deposits to two years.

Centurion Bank of Punjab announced a cut of 0.50 per cent on fixed deposits for one year and above, from 8.5 per cent to 8 percent. Also a 0.25 per cent cut fixed deposits for the 13 months and 15 days term, to 9 per cent.

Other banks, such as Union Bank of India and Punjab National Bank had cut their deposit rates across various maturities last week.

Avail The Best Personal Loan Deals

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